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GRAINS-Wheat edges lower, set for first annual gain in five years

SYDNEY, Dec 29 (Reuters) - U.S. wheat futures edged lower for a second consecutive session on Friday but were set to finish the year in positive territory for the first time in five years as concerns about supplies of high quality wheat support prices.

FUNDAMENTALS

* The most active wheat futures on the Chicago Board Of Trade are set to finish the year up about 4.5 percent, the first annual gain since 2012.

* The most active soybean futures are down nearly 5 percent during 2017 after posting gains of more than 16 percent a year earlier.

* The most active corn futures are little changed for the year.

* Concerns about supplies of high quality wheat supports prices.

* Soybeans weighed down by concerns about amid ample global supplies, fuelled by improving weather conditions in South America.

* Half of U.S. soybeans exported to China this year would not meet Chinese rules for routine delivery in 2018, according to shipping data reviewed by Reuters, signalling new hurdles in the $14-billion-a-year business.

MARKET NEWS

* The dollar wallowed near a one-month low against a basket of currencies on Friday, while currencies like the Australian and Canadian dollars were at two-month highs thanks to firmer commodity prices.

* Oil prices edged up on Thursday, remaining near 2-1/2-year highs after data showed strong demand for crude imports in China and on increased U.S. refining activity that drew more crude from inventories.

* U.S. stocks edged higher in light trading on Thursday, buoyed by gains in financial stocks and as technology stocks continued to slowly recover from a losing skid.

Grains prices at 0143 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI CBOT wheat 426.75 -1.00 -0.23% -0.29% 428.1 65

0

CBOT corn 350.75 -1.25 -0.36% -0.85% 352.4 58

6

CBOT soy 955.50 -1.25 -0.13% -1.24% 989.6 26

8

CBOT rice 11.66 $0.00 +0.00% -1.19% $12.1 33

0

WTI crude 60.14 $0.30 +0.50% +0.84% $57.7 75

0 Currencies

Euro/dlr $1.194 $0.000 -0.04% +0.42% USD/AUD 0.7796 0.000 +0.00% +0.37%

Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential

(Reporting by Colin Packham; editing by Richard Pullin)